2022 Q3 Encryption Market Investment and Financing Report: L1 regains attention, blue-chip NFT is favored by capital
In 2022, the macroeconomic situation will pose severe challenges to the global financial market, and the cryptocurrency market will not be immune to it alone. From the perspective of the secondary market, since the second quarter of 2022, the prices of mainstream cryptocurrencies have repeatedly hit new lows, and the market value of cryptocurrencies has dropped to US$941.8 billion. Compared with the highest point of US$165.88 billion in the second quarter of 2022, the current DeFi TVL has dropped by about 67% to US$55 billion; the NFT market has not been spared either. DappRadar data shows that the total sales of NFT in the third quarter of 2022 will be 3.4 billion US dollars. billion, a 60% drop from the previous quarter. The value is well below the $8.4 billion in the second quarter of this year and the market peak of $12.5 billion in the first quarter.
In addition, stock prices of listed crypto companies have also fallen in a waterfall. Among them, Coinabse's stock price is now $67, a 73.2% drop from the IPO issue price ($250); Robinhood is now trading at $10.8, a 69% drop from the IPO issue price ($35); as BTC has experienced the largest quarterly price in recent years, Down, MicroStrategy stock, which is highly correlated with the price of BTC, also fell sharply and is now at $220.3. Because MicroStrategy is selling shares and other methods to raise funds to "buy bottom" BTC, now the company's floating profit has turned into a floating loss, and the financial pressure facing MicroStrategy has also increased sharply.
From the perspective of project dynamics, as the encryption market turns bearish, many projects have been disbanded, a large number of layoffs, and executives have resigned. For example, OpenSea announced that it will lay off about 20% of its staff to survive the crypto bear market; Trait Sniper is laying off staff to reduce costs due to financial difficulties; Yam DAO, which is popular in DeFi liquidity mining, because of the impact of the overall economic environment and its community Lost confidence in the development of current projects and are considering closing projects; even the Softbank Vision Fund, which has invested heavily in many encryption projects, plans to lay off 30% of its staff due to serious losses.
Against the background of such a "sustained downturn", investment institutions have also begun to accept the bleak reality of the cold and long winter, and the downturn in the encryption market has also begun to appear in the primary market financing. Under the background of this round of bear market, investment institutions that are more cautious in their shots will screen and eliminate many projects, and what areas will be ambushed in advance? Is their layout giving birth to the next bull market unicorn?
Odaily analyzed and sorted out the financing data in the third quarter of 2022, presenting the track that is more popular with investment institutions, so as to get a glimpse of the new trend of future industry development.
We observed:
The total financing amount in Q3 was US$5.841 billion, and there were 442 investment and financing events.
In August, the financing activity in the primary market dropped sharply, and it rebounded slightly in September.
L1 has become the focus of attention, and Sui is the project with the largest single financing amount.
Against the background of the bear market, blue-chip NFTs have raised large amounts of financing.
The overall performance of DeFi lags behind mainstream tracks such as NFT and GameFi.
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Q3 capital inflows plummeted by 54%, and the total disclosed financing amounted to US$5.841 billion
According to Odaily's incomplete statistics, from July to September 2022, the global cryptocurrency market has disclosed a total financing amount of US$5.841 billion, with a total of 442 investment and financing events (excluding fundraising and mergers and acquisitions), focusing on infrastructure 20 50 cases from technology service providers, 49 cases from financial service providers, 246 cases from application companies and 77 cases from other service providers.Among them, App Track received the largest amount of financing, which was US$2.605 billion.
Compared with the Q2 quarter of 2022, the total financing and the total number of project investment and financing events of each track in Q3 have declined significantly. according to "2022 Q2 Encryption Market Investment and Financing Report", the total capital inflow in Q2 was US$12.713 billion, compared with the total capital inflow in Q3 dropped by 54%. At the same time, investment and financing incidents also fell slightly, from 511 to 442.
Among all financing events, there were 11 deals with a financing size of more than US$100 million. Among them, there are 3 deals in the infrastructure track, 2 deals in the financial service provider track, 2 deals in the other service provider track, and 4 deals in the application track.
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In August, the financing activity of the primary market dropped sharply, and there was a slight rebound in September
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GameFi remains popular, L1 a new focus
The trend of capital tending to invest in GameFi continued in Q3. The financing amount of the GameFi track was US$963 million, accounting for 16.4% of the total financing amount, accounting for 15% (67) of the 442 financing events. These include chain game developers, chain game associations and X2E chain game projects.
In addition, capital's interest in L1 is gradually increasing.Although the L1 track has only 13 financings, accounting for only 3% of the total financing, its total financing amount has reached 625 million US dollars, which is the sub-track with the highest financing amount except GameFi;In the last quarter, L1 raised less than $500 million in total funding.
Among them, the top two on the L1 track are Sui and Aptos, which received US$300 million and US$150 million in financing in Q3, respectively. Both of them have become famous in this bear market through high financing and the label of a new generation of public chains. They inherited Libra's Move development language and focused on improving the security and scalability of L1 while massively improving network performance. These are the problems that the veteran L1s have exposed but have not yet solved.
In addition to L1, which focuses on performance improvement, investment institutions also pay more attention to L1: Rubix, which focuses on transactions and data transmission; Oasys, which solves the problems of slow Web3 game transactions, high gas costs, and unoptimized interfaces.
Despite the downward baptism that lasted for several months, most of the L1 tokens that led the last round of bull market are at their lowest point in history, but they can provide support for the underlying development of the blockchain from the underlying network stack to the consensus model to the expansion solution The L1 track still received more large-scale financial support.
The DeFi track, which ranks second in the number of financing, had 45 investment and financing events in Q3, raising a total of 352 million US dollars, and most of them were more than one million in financing scale, which was mediocre in the mainstream track.The most active vertical areas of this track are lending services, cross-chain protocols, and liquidity staking protocols.
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Under the background of the bear market, blue-chip NFT conducts large-scale financing
The total financing amount of the NFT track ranks third, with a total of 33 financing events and a total financing amount of 357 million US dollars. Both the scale of investment and the number of projects have dropped significantly compared with Q2. It is worth noting that the data in the figure below shows (intercepting the top 10 NFT projects with financing amount), blue-chip NFT leads the large-scale financing of this track, such as Doodles received US$54 million; Moonbirds parent company PROOF received US$50 million; VeeFriend Received $50 million in funding.
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The maximum single investment amount is 300 million US dollars (Mysten Labs, the parent company of the public chain Sui)
In the case of a decrease in the overall financing amount, the highest single financing amount in the industry has also been declining. According to specific tracks, the projects with the largest single investment amount in each vertical field are as follows:
On the infrastructure track, Mysten Labs, the development team of the public chain Sui, completed a financing of US$300 million, led by FTX Ventures, and participated by a16z Crypto, Jump Crypto, and Binance Labs.
Technology service provider Circuit and domain name service Unstoppable Domains completed a $65 million financing at a valuation of $1 billion, led by Pantera Capital. The new financing will be used to reduce the friction of encrypted payments between applications and establish a reputation-based rewards program.
Financial service provider Circuit and payment solution CloudWalk have completed financing of US$150 million and will launch their own blockchain network.
In other service provider tracks, Islamic Coin, an Islamic encryption project, announced the completion of a $200 million private placement financing to provide support for sustainable businesses that comply with Sharia law.
On the application track, Limit Break, the parent company of NFT project DigiDaigaku, raised US$200 million in financing, which will be used to develop Web 3 MMO games.
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